UB04 Patient Discharge Status Code 02: Discharged/transferred to a short-term general hospital for inpatient care

Overview

The UB-04 Patient Discharge Status Code 02 is a standardized administrative code used to identify the specific disposition of a patient at the conclusion of an inpatient stay ^[1]. Specifically, Code 02 indicates that the patient was discharged or transferred to a short-term general hospital for the purpose of receiving inpatient care [CODE]. This code is essential for accurate billing and tracking of patient movement within the healthcare system, particularly for acute inpatient hospitals and acute outpatient hospitals that utilize the UB-04 claim form ^[2].

Under the guidelines established for the UB-04 claim form, providers such as acute inpatient hospitals must report the patient’s status to ensure proper reimbursement and to satisfy regulatory reporting requirements ^[2]. Code 02 signifies a transfer between acute care settings, which often triggers specific payment logic related to transfer cases rather than routine discharges [PATIENT STATUS CODES]. While MassHealth and other payers have transitioned toward electronic claims submission, the data elements required for the UB-04 form, including the patient status code in Field 17, remain mandatory for both paper and electronic claim equivalents ^[2].

When to Use

Patient Discharge Status Code 02 must be used when a patient is transferred from the billing facility to a different short-term general hospital for continued inpatient treatment [CODE]. This code is appropriate when the receiving facility is an acute care institution rather than a specialized facility like a skilled nursing facility or a psychiatric hospital [PATIENT STATUS CODES]. It is specifically intended for transfers where the patient is expected to be admitted as an inpatient at the destination hospital [CODE].

This code should be distinguished from other transfer-related codes based on the destination's certification and the nature of the care. For example, if the patient is being transferred to a designated cancer center or a children’s hospital, Code 05 should be used instead of Code 02 [PATIENT STATUS CODES]. Furthermore, if the transfer to the short-term general hospital is part of a "planned acute care hospital inpatient readmission," the provider must use Code 82 rather than the standard Code 02 [PATIENT STATUS CODES]. Code 02 is reserved for immediate transfers for inpatient care that do not fall under the specific "planned readmission" criteria introduced in October 2013 [PATIENT STATUS CODES].

Step-by-Step Claim Example

The following steps outline how to correctly apply Code 02 on a UB-04 claim form based on the provided billing instructions ^[2]:

1. Identify the Disposition: Confirm through medical records that the patient was transferred directly to another short-term general hospital for inpatient care [CODE].
2. Locate Field 17: On the UB-04 claim form, navigate to Form Locator (FL) 17, which is designated for "Patient Status" ^[2].
3. Enter the Code: Enter the two-digit code "02" into the field [CODE]. Ensure the code is clear and properly aligned within the box if submitting a paper claim via an approved waiver ^[2].
4. Verify Against Planned Readmission: Review the discharge plan to determine if the transfer was a "planned acute care hospital inpatient readmission." If it was planned, use Code 82; if it was a standard transfer, proceed with Code 02 [PATIENT STATUS CODES].
5. Submit the Claim: Submit the completed UB-04 form electronically via the Provider Online Service Center (POSC) or on paper if a valid electronic claim submission waiver is on file with MassHealth ^[2].
6. Review Remittance: After processing, check the remittance advice to ensure the claim was adjudicated correctly based on the reported transfer status ^[2].

Common Mistakes & Audit Red Flags

One common error is the misidentification of the receiving facility's type. Using Code 02 for a transfer to a Skilled Nursing Facility (SNF) is incorrect; Code 03 must be used for Medicare-certified SNFs, while Code 64 is used for Medicaid-only certified nursing facilities [PATIENT STATUS CODES]. Similarly, if the destination is a Critical Access Hospital (CAH), Code 66 is the appropriate selection rather than Code 02 [PATIENT STATUS CODES]. Audits often flag claims where the destination hospital's provider type does not match the status code reported by the transferring facility.

Another significant audit red flag involves the "planned readmission" codes. Since October 1, 2013, specific codes (81-94) were implemented to track planned readmissions [PATIENT STATUS CODES]. If a patient is transferred to a short-term general hospital for a pre-scheduled inpatient procedure, using Code 02 instead of Code 82 is considered a billing error [PATIENT STATUS CODES]. Additionally, providers must ensure they do not use Code 02 if the patient was discharged to home or self-care (Code 01) or if the patient left against medical advice (Code 07), as these represent fundamentally different discharge outcomes [PATIENT STATUS CODES].

Related Codes/Fields

Code	Meaning
01	Discharged to home or self-care (routine discharge) [PATIENT STATUS CODES]
05	Discharged/transferred to a designated cancer center or children's hospital [PATIENT STATUS CODES]
66	Discharged/transferred to a critical access hospital (CAH) [PATIENT STATUS CODES]
82	Discharged/transferred to a short-term general hospital for inpatient care with a planned acute care hospital inpatient readmission [PATIENT STATUS CODES]
FL 17	The Form Locator field on the UB-04 where the Patient Status Code is recorded [2]

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References

[1] PATIENT STATUS CODES — https://med.noridianmedicare.com/web/jea/topics/claim-submission/patient-discharge-status-codes

[2] BG-UB-04 (02/21) — https://www.mass.gov/doc/ub-04-billing-guide-0/download